ThunderEd was incorporated as a nonprofit organization on January 1, 20x1. The nonprofit dedicated to giving kids in middle school through high school knowledge and skills for economic success. The organization recruit volunteers to teach a variety of topics such as financial literacy, how to start a business, and entrepreneurship. The nonprofit has also expanded to offer financial literacy courses to the public. During the fiscal year ended December 31, 20x5, the following summary transactions occurred. ThunderEd paid wages and salaries of $1,039,000. Department employees earned the following: programs $865,000, fundraising $50,000, and administration $130,000. The remaining amount was accrued at year-end. ThunderEd paid operating expenses of $230,000 for programs, $10,000 for fundraising, and $33,000 for administration. In addition, ThunderEd paid $3,000 of outstanding accounts payable and $5,000 to obtain inventory. Administrative expenses of $7,000 that were recognized as prepaid expenses in the prior year were consumed. Property, plant, and equipment was acquired with a note for $20,000.

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Journal Entries for ThunderEds Transactions 20x5 Note Well assume a calendar year January 1 December 31 for fiscal year 20x5 Transaction 1 Wages and S... View the full answer